Automotive NFC Market Size to Exceed $6 bn by 2025, says Global Market Insights

Automotive NFC Market Size to Exceed $6 bn by 2025, says Global Market Insights
Automotive NFC Market Size to Exceed $6 bn by 2025, says Global Market Insights

Technological advancements in the connected car landscape coupled with the ever-rising need for saving time and maximising productivity are driving the penetration of IoT technology in the automotive market. The cars are increasingly being incorporated with IoT applications such as in-vehicle infotainment systems, predictive maintenance systems, and dashboard reporting. The introduction of these next-gen IoT systems in automobiles has been promoting the use of high-speed communication technologies that can offer faster data rates, response times, and secure vehicular communication.

A study by Global Market Insights points out that Near Field Communication (NFC) technology establishes a safe & secure communication channel when transferring data among the automotive components while preventing any unauthorised access from external sources. The automakers are leveraging on this attribute to provide simple “tap and go” functionality for features, such as car access and engine ignition, further supplementing the growth of the automotive NFC market. Another factor that has acted as a catalyst for the adoption of the technology over its contemporary peers, such as Bluetooth and Wi-Fi, is its faster connection establishment and response times. The use of NFC technology has been a key part in augmenting the driver experience, bringing personalized entertainment and connected infrastructure in the car environment in a safe & easy-to-use manner. The automotive suppliers and car manufacturers are forming tie-ups with prominent automakers to develop customized NFC solutions for their automobiles. 

The players in the automotive NFC market are building partnerships with other automotive manufacturers to develop new & advanced NFC solutions for automobiles. The automakers are keen on launching NFC-based smart car solutions for their product offerings to gain an edge over their competitors. For instance, in December 2018, BMW launched NFC-based digital keys for its X5 and X8 series cars. The digital keys functionality will allow drivers to lock & unlock their cars and start the engine with their NFC smartphones. It will also provide drivers the option to share their digital key over the air with up to five other individuals. Some of the companies present in the automotive NFC landscape are Texas Instruments, Telit, STMicroelectronics, Sony, Smartrac, Samsung Semiconductors, PREMO, Panasonic, NXP Semiconductors, Broadcom, and Alpine Electronics.

According to Global Market Insights, the high-end vehicles in the automotive NFC market will register a growth rate of more than 31% over the forecast timeline. The rising incorporation of smart driving applications into various high-end passenger cars is rapidly transforming the automobile landscape by improving security and enhancing driver experience. The ability of the NFC technology to simplify the pairing process is the primary factor driving its usage in the automotive landscape. The NFC technology is also used for various interior applications such as communication support, the interaction between a driver and car, and information retrieval. Without the use of NFC technology, it requires over eight different interactions to establish the first connection between a car and a smart device and NFC technology substitutes these transactions with a single transaction that only requires the NFC device to be held over an automobile’s NFC dashboard.

The study claims that North America automotive NFC market will attain a CAGR of over 32% over the projected time period due to the introduction of various road safety guidelines mandating the use of ADAS systems. The automakers in the region are incorporating advanced smart driving features into automobiles, which has generated a myriad of opportunities in the integration of NFC solutions in vehicles. The increasing number of initiatives aimed at advanced innovations in the autonomous landscape in the region coupled with a favourable regulatory landscape has further added to the growth of the market.